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I didn't read the whole OP, but I will say this, if the Wii is not competing with (the others of) this generation of consoles then why are they not selling better, sure they are doing better each than the GC and Xbox, but if they are the only ones of the latest generation shouldn't they (PS3+360) be comparable in sales to all three of last generations consoles?

Also I see a lot of similarities with the Wii and DS, so is the DS in the same boat as Wii, and is it in fact competing with the GBA instead of the PSP.